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Suppose, Hannah's and Jose's utilities for tea and coffee are U = 3T+4C and U=4T+3C, respectively. The total amount of tea is fixed at 28kg,

Suppose, Hannah's and Jose's utilities for tea and coffee are U = 3T+4C and U=4T+3C,

respectively. The total amount of tea is fixed at 28kg, and for coffee - 21kg. Initially, Hannah has

15 kg of coffee and 10 kg of tea.

a. Find the MRS for Hannah and Jose. Explain their meaning.

b. Show the initial allocation on Edgeworth box.

c. Draw the contract curve.

d. Is the initial allocation Pareto efficient?

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